WHILE GENERAL Motors (GM) yesterday announced new fuel-economy data of up to 230mpg for its electric car, the Chevrolet Volt, the car is unlikely to make any money for the financially troubled firm.
Fritz Henderson, GM’s chief executive, said in a press conference in Detroit yesterday that the Volt had recorded 230mpg (1.02l/100km) in city usage during the latest official tests.
This figure is based on a draft fuel-economy cycle under development in US, designed to give customers an easy way to compare alternatively fuelled vehicles to conventional models. It means the car is likely to achieve a benchmark 100mpg (2.82l/100km) on the European combined cycle when it goes on sale here under the Opel brand, called the Ampera.
However, Henderson said the technology underpinning the Volt is expensive and will affect the price of the car. Earlier this week, GM filed a report with the US Treasury revealing its doubts about the profitability of the first generation Volt. The new car, hailed as the firm’s saviour, “has not yet proven to be commercially viable” according to the report.
Additionally, GM is worried that competitor companies will quickly catch up with the Volt’s technology. “Our competitors and others are pursuing similar technologies and other competing technologies, in some cases with more money available. There can be no assurance that they will not acquire similar or superior technologies sooner than we do.”
The need to get the Volt to market soon is clear but the November 2010 launch is now in doubt, despite pre-production and testing currently underway.
Regardless of doubts about the economic viability of the Volt, Henderson confirmed he expects “new GM” to break even in 2010 and become profitable again in 2011. A new product onslaught will form the basis for this – featuring 25 new models for the US market, including a Cadillac targeted at BMW 3-Series buyers.
While it is hoped sales of conventional cars will underpin the company’s immediate technology development plans, Henderson is confident the second- and third-generation Volt models will be more affordable and therefore profitable.